Lendlease buying $161m industrial portfolio

Last week Lendlease secured Medibank to a quarter of a 70,000 square metre Docklands office.

Lendlease, on behalf of its Australian Prime Property Fund, is picking up a $161m million industrial portfolio from Mirvac and a Morgan Stanley mandate.

The three assets – two in Melbourne, in Altona (pictured, top) and Altona North, and the other in Sydney’s Campbelltown – spread a total of 15.23 hectares and contain 76,265 square metres of area.

The price would reflect a circa-four per cent net yield.

By income, the portfolio carries a low Weighted Average Lease Expiry of 4.4 years.

The two Melbourne warehouses abut APPF holdings, allowing for longer term development upside.

CBRE’s Rory Hilton and Chris O’Brien with JLL’s Tony Iuliano and Adrian Rowse marketed the properties (story continues below).

Pacific Brands occupies the Altona North warehouse.

Last week we reported Lendlease secured Medibank to a quarter of a 70,000 sqm office taking shape in Docklands.

The Campbelltown property is rented to ZircoData.

In May, the landlord paid an AMP managed mandate (for Swiss Re) $130.1m – reflecting a landmark low 3.62pc yield – for an Eastern Creek warehouse leased to Best & Less.

Last month, ESR Australia became Australia’s third biggest industrial property owner following settlement of a $3.4 billion portfolio – the Milestone Collection – from Blackstone.

More to come.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.